Potential changes introduced by the so-called Redispatch reserves, which were planned by Federal Minister for Economic Affairs, Katherina Reiche (CDU), could elevate the funding costs for wind energy by as much as 40 billion euros. This significant figure stems from an internal calculation by the Federal Environment Agency (UBA), as reported by the special information service of the “Tagesspiegel”.
The core issue revolves around how the Redispatch reserve mechanism intends to limit the expansion of renewable energies in regions where electricity grid capacity is already strained. Under this system, operators of newly installed wind or solar parks would lose their compensation payments for a ten-year period if their facilities must be curtailed-or “de-rated”-due to grid bottlenecks. According to the UBA, this limitation will lead to substantial revenue losses. The agency notes that these losses will structurally increase the overall cost for new wind projects in the affected areas.
The UBA anticipates a decreasing supply of bids in future wind tenders, suggesting that competition might regress to the level seen in 2024. During that period, the successful bid price was 1.5 cents per kilowatt-hour higher than in the two most recent auction rounds. Consequently, the expected EEG extra costs-out of which the household budget must account-total up to approximately 40 billion euros, calculated solely for the wind tenders scheduled between 2027 and 2030.
The Redispatch reserve is part of a broader package of electricity grid laws currently being coordinated among various federal ministries and is slated for approval by the Cabinet on May 20th.